I've read various forms of the following question, but haven't found an answer that fits the following, so I'm hoping someone can help out.
I'm interested in potentially acquiring a currently in-beta SaaS solution. Making quite a few ballpark assumptions...the current owners have invested $5k, and currently have 10 customers paying roughly $30/month, so $300 per month revenue. They will obviously assume they can grow those 10 customers (which is what I intend to do) and be looking at how much they would have made over the course of a year (we'll stick with $300/month x 12 = $3600 - $500 for hosting fees).
What would be a reasonable amount to offer? Putting a price on money invested/made is one thing, valuing time and code (IP) is another.
Thanks in advance.